Boomers turn home equity into 401(k) funds

MarketWatch-In other words, these people, mostly baby boomers, are getting a tax break
on both sides of the deal, according to Hyrum Smith, an assistant professor at Virginia
Tech’s College of Agricultural and Applied Economics; Michael Finke, an associate
professor at Texas Tech University; and Sandra Huston, who is also an associate professor
at Texas Tech University.

They are borrowing against the equity in their homes at low rates and then investing
the money in tax-deferred accounts, according to the co-authors of a new study, “Financial
Sophistication and Housing Leverage among Older Households,” scheduled to be published
in the Journal of Family and Economic Issues.

In other words, these people, mostly baby boomers, are getting a tax break on both
sides of the deal, according to Hyrum Smith, an assistant professor at Virginia Tech’s
College of Agricultural and Applied Economics; Michael Finke, an associate professor
at Texas Tech University; and Sandra Huston, who is also an associate professor at
Texas Tech University.